1. A nongovernmental VHWO receives $20,000 of unconditional promises to give with no donor-imposed restrictions. Of this amount $14,000 is due during the current period and $6,000 is due in the next period. The organization estimates that 3% of the pledges will be uncollectible.
2. A nongovernmental VHWO receives a $200 cash gift that is restricted for use in a project to provide immediate assistance to qualified people with temporary hardships. Money is given to a qualified individual during the same period.
3. The Uptown Restaurant donated restaurant equipment to the Food Kitchen, a nongovernmental VHWO. The equipment had a fair value of $6,000 and a remaining useful life of four years, with no scrap value. No restrictions were imposed on the use of the equipment, either by the Uptown Restaurant or the Food Kitchen.
4. A donor contributed $8,000 to a homeless shelter that was restricted to the purchase of a new truck. The money was invested in a CD that pays 5% interest. Accrued interest on the investment totaled $215 at year-end. The income from the investment was also restricted for the purchase of a truck.
5. Orleans Community College assessed its students $750,000 tuition for the 2011 fall term. The college estimates bad debts will be 1% of the gross assessed tuition. Orleans’s scholarship program provides for tuition waivers totaling $65,000. Because of class cancellations, $15,000 is refunded to the students.
6. Your State University received donations of $3 million in 2011 that were restricted to certain research projects on the feasibility of growing tobacco for pharmaceutical uses. The university incurred $1.2 million of expenses on this research in 2011.
REQUIRED
Prepare journal entries to account for these transactions. Include net asset classifications, where applicable.